08-14-2000 EDA Packet - Laserfiche WebLink

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STAFF ORIGINATOR: DATE: TOPIC: Vote Required: AGENDA ITEM 2.5 Mary Alice Divine 8/14/00 Consideration of TIF Policy Simple Majority BACKGROUND: In 1995 a TIF policy was approved that gave direction for qualifying projects for TIF. Since then the city has built up the Apollo Business Park and several projects in the Clearwater Creek industrial area. With the momentum the city has gained over those five years, EDAC reviewed and recommended some changes to the TIF policy to help reduce the city's dependence on TIF to attract new industrial development, while leaving the city council discretion to go beyond the policy when it is appropriate. Under the new draft policy: 1. Prospects must continue to qualify according to the selection criteria. 2. TIF will be used to pay qualifying reimbursable costs, with landscaping and site preparation added as a qualifying cost. 3. Land write down will continue on the basis that construction of 10,000 square feet (or more) of facility per acre of land is considered best use of the land. 4. Each project will be self sufficient within the allowable TIF capacity of the district. tilib 5. TIF commitments will not exceed of the estimated market value. This is a reduction from the old policy, which allowed 20% of the total project cost. 6. Administrative fees (upfront escrow) will be reimbursed using TIF funds at the completion of the project. This has traditionally been part of the agreements. 7. Assessments will be paid upfront in the Apollo Business Park to allow for a more expedient return of the city's investment in the park's improvements. 8. In other TIF districts, the subsidy for land and assessments will be on a pay- as-you-go basis. This is a change from the old policy, which generally split the subsidy into approximately 50/50 upfront and pay-as-you-go. 9. If the subsidy includes upfront payments of assessments, the city will be reimbursed first from available increment. The grantee will receive its pay-as- you-go after the city is paid back. This is more restrictive than in the past, generally the city and the grantee split the increment. 10.The source of the 10% local contribution will be identified before the project �� 11 is approved. + c 6414 �'f l w i Avq-eateih - - ,r,•.- CC .- iC2W-C44714'Pt..ems`" 0r bo D le, 4•LX /IL CW-C/il'e/(1-4 4(1.-eA2 (7‘14"-'1e.614) / Qika t 42 42 lie - /?Lc. a--t7 /L9,t-1 cLe, C 6��t�+�c �Lz ,a. - ZZ4.,t.e- ft r CA.